Settlements

A2Z USA, INC., et. al. [Sec. 161 & Settlement Agrmnt]

BCSECCOM #:
2001 BCSECCOM 358, 2001 BCSECCOM 357
Document Type:
Sec. 161 & Settlement Agrmnt
Published Date:
2001-03-28
Effective Date:
2001-03-22
Details:


2001 BCSECCOM 358


IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF A2Z USA, INC., STEVE JOHN MORAN,
ROBIN J. MCPHERSON, THOMAS LANDON CROFT,
MARK MARADEI, EZRA MAXWELL GARDNER, AND
WALT BILLS

Order Under Section 161

[para 1]
1. WHEREAS a Settlement Agreement has been executed between A2Z USA Inc., Steve John Moran, Robin J. McPherson, Mark Maradei, Walt Bills and the Executive Director, a copy of which is attached hereto as Schedule “A”.

[para 2]
2. NOW THEREFORE, the Executive Director, considering that it would not be prejudicial to the public interest to do so, orders, by consent, that:

2.1 under section 161(1)(b) of the Securities Act, R.S.B.C. 1996, c. 418 (the “Act”), cease trading in any securities in British Columbia;

2.2 under section 161(1)(c) of the Act any or all of the exemptions described in sections 44 to 47, 74, 75, 98 or 99 of the Act do not apply to any of them;

2.3 under section 161(1)(d) of the Act each of the them resign any position they may hold as a director or officer of any issuer and that each of them is prohibited from becoming or acting as a director or officer of any issuer; and

2.4 under section 161(1)(d) of the Act each of them be prohibited from engaging in investor relations activities on behalf of any issuer;

for a period of 20 years from the date of this Order; and

2.5 under section 161(1)(b) of the Act, A2Z USA Inc. cease trading in any securities in British Columbia permanently.


DATED at Vancouver, British Columbia, on March 22, 2001.





Steve Wilson
Executive Director



2001 BCSECCOM 357


SCHEDULE “A”
IN THE MATTER OF THE SECURITIES ACT
R.S.B.C. 1996, c. 418

AND

IN THE MATTER OF A2Z USA, INC., STEVE JOHN MORAN,

ROBIN J. MCPHERSON, THOMAS LANDON CROFT,

MARK MARADEI, EZRA MAXWELL GARDNER, AND

WALT BILLS


Settlement Agreement

[para 1]
1. The following settlement of issues has been reached between all of the Respondents listed above, except for Thomas Landon Croft and Ezra Maxwell Gardner, (the “Respondents”) and the Executive Director.

Agreed Statement of Facts

[para 2]
2. As the basis for the undertakings and orders referred to in paragraphs 4 and 5 of this settlement, the Respondents acknowledge the following facts as correct:

2.1 A2Z USA, Inc. (“A2Z”) is a corporation created under the laws of the State of Nevada and registered as an extraprovincial company under the Company Act, R.S.B.C. 1996, c. 62.

2.2 According to the records of the Registrar of Companies, the directors and officers of A2Z are Steve John Moran (“Moran”), Ezra Maxwell Gardner (“Gardner”), and Walt Bills (“Bills”).

2.3 A2Z operated a telemarketing business that traded in securities, and had its place of business in British Columbia located at the 22nd Floor, 1050 West Pender Street, in the City of Vancouver.

2.4 A2Z traded in the securities of various limited liability companies. It contacted persons in order to sell them an interest in a limited liability company, which was to carry on the business of selling retail consumer or business goods on a “virtual shopping mall” located on the Internet Web site of A2Z.

2.5 A2Z also traded in securities of its own issue. It contacted persons in British Columbia and elsewhere in order to sell its securities.

2.6 Thomas Landon Croft (“Croft”) was the Sales Manager for the Vancouver office of A2Z and he resided in Delta, British Columbia.

2.7 Robin J. McPherson (“McPherson”) was the Director of Global Expansion of A2Z and he resided in San Diego California and in Vancouver, British Columbia.

2.8 Mark Maradei (“Maradei”) was the General Sales Manager of A2Z.

2.9 Moran was the Chief Executive Officer and Secretary of A2Z and resided in San Diego, California.

2.10 Gardner was a director of A2Z and resided in Rancho Santa Fe, California.

2.11 Bills was the President of A2Z resided in Las Vegas, Nevada.

2.12 None of the Respondents, nor Croft or Gardner, nor any of the employees working for A2Z, possessed any registration under the Securities Act, R.S.B.C 1996, c. 418 (the “Act”) to trade or advise in securities.

2.13 A2Z has not filed a preliminary prospectus or prospectus with the Commission.

2.14 The Respondents traded in securities without registration under the Act in breach of section 34 of the Act.

2.15 The Respondents have distributed securities without a prospectus in breach of section 61 of the Act.

2.16 The Respondents have contacted persons, or have directed or engaged other persons to contact persons in British Columbia by telephone, for the purpose of trading in securities, in breach of section 49 of the Act.

Mitigating Factors

[para 3]
3. The Executive Director has taken into account the following facts as factors mitigating the sanctions which would otherwise have applied in the public interest:

3.1 The Respondents left the jurisdiction upon the imposition of a Temporary Order in this matter and do not intend to return to British Columbia.

    3.2 The Respondents represents, and the Commission staff have found no evidence to contradict their assertion, that they did not sell any securities of any kind to residents of British Columbia.
      3.3 The Respondents Moran, Maradei, Bills, and McPherson sold similar securities pursuant to exemptions in California, which they believed applied in British Columbia.

      Undertakings

      [para 4]
      4.1 A2Z undertakes and agrees that it will not engage in trades of any kind in British Columbia in the future.
        4.2 The Respondents Moran, Maradei, Bills, and McPherson agree that they will not trade securities in British Columbia for 20 years and will not act as directors, officers or in investor relations activities on behalf of any issuer in British Columbia for 20 years.

        Order

        [para 5]
        5. The Respondents Moran, Maradei, Bills, and McPherson consent to an order by the Executive Director that:

        5.1 under section 161(1)(b) of the Act they cease trading in any securities in British Columbia for a period of 20 years from the date of this order;

        5.2 under section 161(1)© of the Act any or all of the exemptions listed in sections 44 to 47, 74, 75, 98 or 99 do not apply to any of them for a period of 20 years from the date of this order;

        5.3 under section 161(1)(d) of the Act each of them resign any position that any of them may hold as director or officer of an issuer and that each of them is prohibited from becoming or acting as director or officer of any issuer for a period of 20 years from the date of this order;

        5.4 under section 161(1)(d) of the Act each of them is prohibited from engaging in investor relations activities on behalf of any issuer for a period of 20 years from the date of this order.

        [para 6]
        6. A2Z consents to an order by the Executive Director that:

        6.1 under section 161(1)(b) it cease trading in any securities in British Columbia permanently.

        Waiver

        [para 7]
        7. The Respondents waive any right any of them may have, under the Act or otherwise, to a hearing, hearing and review, judicial review or appeal related to, in connection with, or incidental to this agreement.

        [para 8]
        DATED at San Diego, CA, USA, on February 28, 2001.

        “Steve John Moran”
        on behalf of A2Z USA, Inc.

        “Kennan Kaeder”
        Witness signature

        Kennan E. Kaeder
        Witness name (please print)

        110 West C Street, #1904, San Diego, CA
        Witness address

        Attorney
        Witness occupation


        DATED at San Diego, CA, USA, on February 28, 2001.

        “Steve John Moran”
        Steve John Moran

        “Kennan Kaeder”
        Witness signature

        Kennan E. Kaeder
        Witness name (please print)

        110 West C Street, #1904, San Diego, CA
        Witness address

        Attorney
        Witness occupation


        DATED at San Diego, CA, USA, on March 1, 2001.

        “Robin J. McPherson”
        Robin J. McPherson

        “Steve Moran”
        Witness signature

        Steve Moran
        Witness name (please print)

        5965 Pacific Centre Blvd. #702, San Diego, CA
        Witness address

        CEO
        Witness occupation


        DATED at San Diego, CA, USA, on March 9, 2001.

        ‘’Mark Maradei’’
        Mark Maradei

        ‘’Julia Reynolds’’
        Witness signature

        Julia Reynolds
        Witness name (please print)

        110 West C St., #1904, San Diego, CA
        Witness address

        Paralegal
        Witness occupation


        DATED at San Diego, CA, USA, on March 1, 2001.


        ‘’Walt Bills’’
        Walt Bills

        “Steve Moran”
        Witness signature

        Steve Moran
        Witness name (please print)

        5965 Pacific Center Blvd., #701, San Diego, CA
        Witness address

        CEO
        Witness occupation


        DATED at Vancouver, British Columbia, on March 22, 2001.




        Steve Wilson
        Executive Director